7 Ways To Create Multiple Streams of Income
Illustration by Jonathan Woodward
There’s a common saying that my Mum used to use which goes like this:
Don’t put all your eggs in one basket.
I think at the time she was actually referring to boyfriends after I fell head over heels at the tender age of 17 with the boy who is of course now the husband!
But the advice applies to income too. Multiple income streams - with a combination of passive and active - are not just a nice-to-have for any location independent professional, they’re a must-have. It’s just too risky to rely on a sole source in the long term.
Here are 7 ways you can create multiple streams of income using skills you may already have…
Earn money by recommending
Also known as affiliate income, you can earn a percentage of sales by recommending products you like & rate on your website or blog such as books via Amazon associates or high street brand products and services from sites like Share A Sale, Commission Junction and AffiliateWindow. You can also make money by becoming a LIP affiliate and recommending the book, X Marks The Spot. It’s free and costs you nothing to join.
Create t-shirts, mugs, pins, calendars and more
If you have a funky logo or a creative streak, then using a service like Cafepress.com is a simple way to sell a whole range of products via drop shipping without having to carry stock. If you haven’t checked out our range of LIP t-shirts yet, take a peek here >>>
Buy the rights to sell existing products via drop shipping
Similar to creating and selling your own products via Cafepress, you can find a number of existing products that can be sold via drop shipping services. You buy the rights to sell the the products, set up ’shop’, take orders and then hand off the delivery, inventory management and all other logistics to someone else. Bear in mind that you often have to sort out the customer service side yourself however - but this could be outsourced.
Alternatively, if you’re a budding product designer and you’ve got your own great idea for a product but have no idea how or where to get it manufactured, then try this innovative site.
Sell your knowledge in downloadable format
If you sell a service or charge to share your knowledge in the form of consulting or coaching, then how about creating an ebook, audio download or even video download?
Creating your own ebook is not a complex process (although it can be a lengthy one) and if you already have an audience or marketing funnel, then it’s a great addition to your offerings. Not only does a book (even an ebook) give you additional credibility and a new title (author!!), it’s a great recurring stream of income. Services like Ejunkie (which I use to sell the LIP book) are simple to use and easily let you run your own affiliate program. If you’d prefer to create a hard copy version (paperback or hard back), then try Lulu.
Create your own membership site
…or as some call it, an interactive learning environment. For a more long term strategy, consider creating your own interactive learning environment or membership site for your target audience.
The resource I recommend most often to clients and colleagues is this: Teaching Sells by copywriting expert, Brian Clark - it’s the most effective online course that teaches you how to create, market and sell learning environments/membership sites. The free downloadable report alone is worth reading (available by clicking the banner at the bottom of this post).
Shares or FX trading
If you’re not averse to a little more risk, then trading shares or foreign currency is an additional way to make your existing assets work for you. Before you do this, I would definitely recommend learning at least the basics of trading. Mashable has 30+ stock market tools and resources to help.
Rental property income
Obviously this is not just something you can whip up out of nowhere, but income from rental property is another form of passive income which can be created with any assets you may already have just sitting in the bank.
If you are looking for ways to spread the risk of your sole income ever drying up or dropping off, then creating multiple streams of income is a sensible long term strategy.
Start to plan and implement your ideas now and in 3, 6 or 12 months you could have a whole portfolio of products and services earning you a tidy little sum and diversifying that risk.
Note: This post contains affiliate links.
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Comments
Just like to add that we should all focus on one thing at a time. Get one stream right first before going to the next. Else we can never achieve anything…
That’s a great list, although I would imagine rental property might be tough (but not impossible!) for the location independent professional (my New York colleague owned and rented out properties in Amsterdam, for example).
Affiliate income is great - that’s just about as close to completely passive income as you can get.
Terrific post. This is the way you have to think if you don’t want your job to be the central focus of your existence.
Great tips Lea! The beauty in most of these streams of income is that they are passive and will keep you getting paid even if you can’t show up for work 
@Richgrad - you are very right! I’ve never been too good at that though
@Nathan - thanks for stopping by. Let us know how you get on applying the tips!
@brip blap - rental property is a bit tough! We have one back in the UK which we’re currently looking for a tenant for after our old (very good) one moved away. Puts a temporary strain on finances when you have to cover a mortgage as well but managing it remotely so far has been fairly simple - I’ve got another post on the boil about how to do this which I’ll put up in the New Year.
@Santiago - absolutely…passive is the way to go if you want to spend more time on the beach!
One of the keys with rental property is to be able to afford a decent property manager - and the only way to make sure they are any good is to employ them for at least a year before you leave! We have 2 (in different towns) and they are excellent - its not fair on you or the tenants to be continents away and trying to manage it yourself!
Great advice, lissie - the only way we are able to manage our property is because the in-laws (who live about 15 miles away from our property) are the first point of call for our tenants and they have all the contact number of plumbers/handymen etc. so can deal with anything urgent without ever having to contact us. If you’re not that fortunate, then a property manager is a must-have for sure. Lissie - what, in your view, makes a good versus bad property manager?
I think the best ones are independent and not part of a real estate agency. The real estate agency seems to use the property management section as a nice little earner but its not really a focus for their business. I prefer a property manager who has a background in do-it-yourself or a trade so that I don’t have to pay for callout on a plumber to change a tap!
I have a 5 acre homestead outside of Lincoln, NE - 2 miles north of I-80. It has a huge barn, chicken coop, fenced area for animals, garden area. I am currently remodeling and upgrading the house for some kind of business opportunity. Beside renting the house, how else might I use the property to generate incomes - possibly multiple incomes.
[...] a location independent business you can enjoy different climates and cultures throughout the year and still earn a nice lifestyle [...]
Great list of passive income options!
Using public domain content or content under other liberal licenses is another way. You can find details on: http://www.vagabondingentrepreneur.com/2008/01/09/making-money-selling-other-peoples-products/
Thanks so much - that has really inspired and excited me! I am desperately trying to find out how to make the life I want (one that allows me to come and go between the UK, Peru, Japan, Spain and Canada - due to various ties in each!) and this kind of resource fills me with a sense of real possibility…
Hi Vanessa - great, I’m glad you found the post valuable…UK, Peru, Japan, Spain and Canada - that’s quite a combination! Good luck…
$2.6 Million in 2 years…
You make a great point, however, what would your life look like today if 5 years ago you began behaving like the person that has everything you now dream about? Do you think you would be closer to having it by now? Absolutely you would if you had taken…
great suggestions. i set up my own site after reading this site a while back and havent looked back since. cheers
Nice list, I will put some to use that apply to me
Nathan
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